IP/09/1740

Brussels, 19 November 2009

Commission adopts communication on releasing the potential of public private partnerships

The Commission has set out a framework for encouraging the use of public private partnerships (PPPs) to meet existing and future needs for investment in public services, infrastructure and research in Europe. When properly managed in the current and future public interest, PPPs can bring immense benefits. Yet their use is still limited and many Member States have little experience with them. In line with the European Economic Recovery Plan, the Commission wants to give a fresh push to PPPs to encourage a more frequent and better use of PPPs at a time where innovative public financing solutions are needed to manage the challenges of tight national budgets. The decision on whether or not to use PPPs will remain entirely with national authorities. The Communication also covers options for improving the functioning of the EU's Joint Technology Initiatives, which are EU co-funded PPPs in key research areas (see MEMO/07/570 ).

European Commission President José Manuel Barroso said: " With this communication the Commission is launching a new and comprehensive framework for public private partnerships. As Europe emerges from the economic crisis, public private partnerships can help public authorities to create jobs by continuing to invest in the future, while we implement exit strategies to bring public finances back towards balance. Properly planned and executed with the long-term public interest in mind, PPPs can boost investment in high quality health care, education and sustainable transport systems. They can be a tool for tackling climate change and boosting energy efficiency. We want public authorities to make more and better use of PPPs"

The crisis has placed renewed pressure on public finances in many Member States, with, especially once the current fiscal stimulus in many Member States is over, potentially negative effects for the development of new key infrastructure. By way of example, meeting the European Commission's commitments for the trans-European transport network alone will require finance in excess of EUR 20 billion during the period 2007 to 2013. Significant additional funds will be needed to meet commitments for climate change and energy. PPPs offer capacity to leverage private funds and know-how and pool them with public resources.

EU financing through the Structural Funds, the European Investment Bank or Trans-European Transport Network instruments can help to mobilise PPPs for essential investment in projects even at a time of reduced availability of national public or private funding.

The framework for PPPs is based on i) better coordination and further strengthening and streamlining of financing instruments for PPPs at EU level; ii) close cooperation with the EIB; and iii) the strengthening of public sector capacity.

The framework set out in the Communication involves the following ( http://ec.europa.eu/growthandjobs/index_en.htm ):

• increased funding for PPPs through working with the EIB, by re-focusing existing Community instruments and by developing guarantee instruments for PPP financing;

• in cases involving EU funding, better rules and procedures in order to ensure a level playing field between wholly publicly managed projects and those managed under PPPs;

• a more effective framework for innovation, including the possibility for the EU to participate in private law bodies and directly invest in specific projects;

• considering an EU legislative instrument on concessions, based on the ongoing Impact Assessment;

• improved information dissemination and exchange of best practice; including the creation of a new PPP group in which relevant stakeholders can share their concerns and further ideas with regard to PPPs.

Joint Technology Initiatives (JTIs) are a new way of realising public-private partnerships for research at European level. A JTI is co-financed from the EU budget and brings public and private interests together into a new, implementation structure. So far, JTIs with total budgets ranging from € 1 billion to €3 billion, have been set up in five areas: innovative medicines, aeronautics, fuel cells and hydrogen, nanoelectronics and embedded computing systems.